Interest on bank loans for unused business machinery purchase allowed as deductible revenue expense; appeal dismissed.

The dominant issue was whether interest paid on bank borrowings used to acquire machinery that was never actually put to use could be deducted in computing taxable income. The SC held that where the machinery was acquired solely for business purposes and was treated as a business asset, actual user at the time of assessment is not determinative; the borrowing was for the purposes of the business, making the interest revenue expenditure allowable as a deduction. Consequently, the Tribunal's view allowing the interest deduction for the relevant assessment years was affirmed and the appeal was dismissed.

---

---

The Supreme Court upheld the Tribunal's decision that interest paid on loans for machinery, even if not used in business at the time of assessment, is a deductible amount. The appeal was dismissed with no order as to costs.

---